China's Chery takes over Nissan's South Africa plant in latest global manufacturing push

Chinese automaker Chery has acquired Nissan's factory in South Africa, completing its push to establish a local manufacturing base on the continent. The move is part of a broader offensive by Chinese carmakers, which have been snapping up idle overseas plants to expand their global footprint and sidestep tariff barriers erected by the United States, the EU and others.

Chery announced Thursday (local time) that it had formally taken over the Nissan plant in Rosslyn, near Pretoria, South Africa's administrative capital, according to China's state-run Xinhua news agency and other foreign media. The Rosslyn facility, established in 1963, is one of the oldest automotive production sites in South Africa. Nissan had announced in January that it would sell the plant to Chery as part of efforts to address financial difficulties and streamline its assets.

Zhang Guishan, Chery's vice president, said at the handover ceremony that the company's long-term goal was to develop the Rosslyn plant into a major automotive hub encompassing not just assembly but also research and development and supply chain operations. "We will use the expansion of the African market, including South Africa, as a springboard to achieve annual sales of more than 100,000 vehicles," he said.

Before beginning production, Chery plans to invest millions of dollars in a comprehensive overhaul and expansion of the facility, with full-scale line operations set to begin in mid-2027. Initial production capacity is planned at 15,000 vehicles per year. The company also pledged to retain all 692 existing Nissan workers and create an additional 3,000 jobs in manufacturing and supply chain roles.

The acquisition fits into the sweeping global production expansion strategy Chinese automakers have been pursuing to shake up international markets.

Chinese brands, which once relied primarily on exports backed by a massive domestic market and competitive pricing, have been rapidly pivoting to a "Made by China" model — building cars directly in overseas markets — as tariff barriers in the US, the EU and elsewhere have grown increasingly formidable.

In this environment, idle overseas plants shed by global automakers through restructuring have become prime targets for Chinese capital. Acquiring such facilities allows Chinese companies to dramatically cut costs and setup time while gaining the status of a local manufacturer.

Beyond South Africa, Chery has partnered with Spanish automaker EBRO to secure a former Nissan plant in Barcelona, where it is already operating a European production line. BYD acquired a shuttered Ford plant in Brazil last year to launch its first overseas production base outside China, and is now pursuing a foothold in Europe — including plans to establish or acquire a large-scale factory in Germany, with Hungary also under consideration.

Geely has finalized the acquisition of an idle Ford plant in Europe, while SAIC is actively pushing to build its first EU factory in Spain's Galicia region, with an annual capacity of 120,000 vehicles, as both companies move to reshape global supply chains.

"Chinese automakers are filling the void left by global brands, leveraging their deep capital reserves and advanced electric vehicle and autonomous driving technology ecosystems," an industry official said. "By swiftly transitioning from importers to local manufacturers, they are bypassing regulatory and tariff barriers in each country while laying the groundwork to dominate Global South markets across Southeast Asia, Latin America and Africa."